Panera debuts digital-focused format in New York

Panera Bread has opened a digital-focused cafe in New York targeting densely populated areas.

With digital sales representing 50% of total system sales, and over 3 million average transactions each week from digital channels including the app, kiosk and web, Panera guests are seeking convenience, customization and the speed offered by digital experiences, according to Eduardo Luz, chief brand and concept officer.

"At Panera, our innovation has always been rooted in the guest and associate experience, how we can reduce friction, drive convenience and bring Panera to new places where we know the demand is high for the freshly-prepared food we serve," Luz said in a company press release. "With a flexible portfolio of cafe designs, we're now able to bring Panera anywhere, from suburban cafes with double drive-thrus, to a digital-only Panera To Go and everything in between."

The New York store, which is located at the Hearst building near Columbus Circle and has a 40% smaller footprint than traditional cafes, features kiosks, a digitized menu and a tracking screen. Designed with limited counter seating, the bulk of the store is geared toward a rapid pick-up experience featuring dedicated shelves for pick-up and to-go orders. It is also the first cafe in the country to fully incorporate the chain's new branding featuring modern art and updated design touches and color palette.

Although the store is designed for urban areas, it is different from the chain's "Panera To Go," format, which first opened in Chicago and has no dine-in seating, solely offering rapid pick-up and delivery shelves, where guests and delivery drivers may pick up orders. A Panera To Go is coming next month to New York's Union Square and is one of several locations planned for urban markets in the next year, along with a series of non-traditional locations in settings like hospitals and universities.

Panera continues to test AI technology across multiple areas. Earlier this year, it began testing Miso Robotics' automated coffee brewing system, as it rolled out its Unlimited Sip Club subscription program. More recently, it began testing OpenCity's proprietary voice AI ordering technology, called "Tori," for drive-thru orders, with the goal of maximizing efficiency and increasing speed of orders. Each AI test allows for Panera associates to focus more on freshly preparing orders and improving the guest experience.

Panera Bread opened in 1987, and has over 2,100 cafes in 48 states and in Canada.